Aptiv

OEM contracts typically include annual price-downs; Aptiv partially offsets this with content-per-vehicle gains, design-for-manufacture, and selective positive pricing. 2024 results show gross margin improvement to 18.8% helped by operational performance and favorable net pricing, though the structure still lacks the unconstrained pricing power seen in tollbooth-like franchises.

Software and safety stacks can command better pricing, but remain more hotly contested. Overall we view pricing power as moderate and execution dependent.